Google apologizes for incorrectly calculating severance payouts; laid-off employees receive less stock.
This comes just after Google declared its intention to eliminate 12,000 employees, or 6% of its staff.
Google made a mistake while calculating the stock compensation that layoffs were supposed to receive. The internet company later apologized to its former workers in an email issued which was obtained by the media outlet, and notified them that the number of stocks listed in its earlier email as part of the severance package was wrong. This comes just after Google declared its intention to eliminate 12,000 employees, or 6% of its staff.
The internet giant had stated that it will provide 16 weeks’ compensation plus two weeks for each extra year at Google, full income for their notice period, as well as other perks. After the announcement, the employees were emailed the specifics of their particular severance package. The business also said that it will speed up the vesting of GSUs by at least 16 weeks. Sundar Pichai, the CEO of Google, has stated that workers affected by the layoffs will get bonuses and any unused holiday time in addition to six months of healthcare, immigration assistance, and other benefits.
According to reports, the corporation calculated the stock awards twice, which led to the error. Due to the lack of clarity in the original emails, several laid-off employees received at least tens of thousands of dollars less than earlier predictions, while others reportedly blamed Google for causing uncertainty. When informed that they would be getting at least 40% fewer stocks than anticipated, a former employee of the software company told that it felt like a “second kick in the gut.”
“I must admit, I had made some quick calculations myself. That figure (of stocks) is quite high, I reasoned. Then I reasoned, “Perhaps they’re taking care of you because we did a thing to you at the last minute,” the ex-employee told the newspaper. The severance pay that we explained on the support site, in extensive documentation, and publicly was correct, but it was incorrectly reflected in the email we sent, which Google People Operations wrote in a recent email, apologizing for the incorrect statistics.
Email Dismissed
In 2023, more than 95,000 tech professionals will have lost their jobs. This figure excludes those who lost their employment across numerous industries. According to the most recent employment data, January saw an increase of over 500,000 new positions.
The announcement was universally hailed as beneficial to the economy. Less frequently mentioned was the fact that a sizable portion of the new positions was in front-line, service-oriented positions. Even if they are crucial positions, the lack of expensive, college-educated office employees among the new hires suggests otherwise.
It was alarming to see how some of the most reputable businesses handled layoffs. Google, for instance, sent out a chilly email and let 12,000 staff go. According to accounts, it was unclear why specific individuals were chosen for the reduction. Employees at Google were not informed if it was because of their ratings, pay, or any other specific data.
Google job cuts: An investor has directed businesses to lay off 1.5 lakh workers.
According to one investor, Google should strive to reduce positions further and bring the total number of employees down to “approximately 150,000 (1.5 lacks) following Alphabet’s headcount at the end of 2021.”
Google recently announced a reduction in headcount of 12,000 jobs, or 6% of its workforce. Hedge fund billionaire Christopher Hohn wrote a letter on January 20 addressed to Sundar Pichai, the CEO of Google and Alphabet, saying that the company’s “decision to cut 12,000 jobs is a step in the right direction, but it does not even reverse the very strong headcount growth of 2022” and that “the management will need to go further.”
After experiencing times of rapid expansion during the previous two years, Pichai recently stated that Google hired “for a different economic reality than the one we confront now.” It should be noted that his first letter in this respect was sent on November 15, 2022, making this his second letter in this regard.
“In my earlier letter, I made the case that Alphabet’s employee count has increased above what is operationally necessary. Over the past five years, Alphabet has hired over 100,000 people, more than 30,000 of whom have joined in the first nine months of 2022 alone.
Google has to address exorbitant employee pay.
He not only advocated for Google to dismiss 1.5 lakh workers but also urged the business to “address exorbitant employee remuneration.” Additionally, the investor suggested to Pichai that Alphabet restrict stock-based pay. “The average wage at Alphabet is significantly greater than the median salary, which was close to $300,000 in 2021.”
“Because there is now substantially less competition for talent in the technology sector, Alphabet has been able to materially cut employee remuneration,” he said. According to a claim by The creator of The Children’s Investment Fund Management (TCI) owns a $6 billion interest in Alphabet, the parent company of Google.
edited and proofread by nikita sharma
